Cannabis producers eligible for federal funding

VANCOUVER– Cannabis producers will be eligible for some federal agriculture funding once the drug is legalized in October.

Federal, provincial and territorial agriculture ministers have been meeting in Vancouver this week for their annual gathering where they agreed the marijuana industry can apply for some federal monies and support, at the discretion of the provinces and territories.

However, the sector will not be allowed to participate in the country’s suite of Business Risk Management programs, B.C. Agriculture Minister Lana Popham said, which includes programs like crop insurance and protection from income swings.

Canada’s agriculture ministers have decided income from cannabis, including medicinal and recreational, will not be eligible for support under AgriStability and AgriInvest — two farm safety net programs.

AgriStability protects producers from large margin declines while AgriInvest is a savings account matched by the federal government designed to encourage on-farm investment.

Saskatchewan’s deputy minister for agriculture, Rick Burton, told reporters the decision to exclude the cannabis sector from the country’s suite of farm safety nets was tied to the current volatility being seen within the emerging industry.

Agriculture is the joint responsibility of the provinces and territories, with the sector funded via five-year joint frameworks. The current Canadian Agricultural Partnership (CAP) was finalized in July 2017, before the legislation legalizing marijuana had been passed.

Federal Agriculture Minister Lawrence MacAulay said some of the funding the sector could apply for could include environment-related or innovation funding. “Should it be approved it would be approved, basically,” he said, noting cannabis is considered to be an agricultural crop.

The cannabis file is largely managed by Health Canada and Justice ministries. Parliament passed bill C-45, the Cannabis Act, in June. Legalization is set for October 17.

The ministers decision to include the sector under certain parts of the CAP framework comes after Quebec’s Agriculture Minister Laurent Lessard requested the file be added to the ministers’ official meeting agenda.

More from iPolitics

4 comments on “Cannabis producers eligible for federal funding”

No subsidy at all. This is not a food crop and most of it will be in large grow op warehouses. Public traded companies own most of the operations with ex politicians as directors. No taxpayer money should be part of this.

Don you don’t get it do you? For a little break on one end the government will collect big on the other end. And don’t confuse real politicians with the likes of Fantino and the rest of the harper disaster. These were always bottom feeders. By the way, you can eat pot. People with illness, mental and physical are eating edibles to help.

If it’s not a food crop it should not be getting an agricultural subsidy. Must be because these grow corporations are owned/run by former politicians and cronies. and they want to be sure to stamp out the mom ‘n’ pop operations.